UPDATED 21:05 EDT / SEPTEMBER 27 2017

INFRA

Cisco sharpens its ax for more job cuts at San Jose HQ

Networking giant Cisco Systems Inc. is set to ax 310 more staffers from its corporate headquarters in San Jose, California.

The company revealed its intentions in a Worker Adjustment and Retraining Notification filing that it provided to state government officials, The Mercury News reported Wednesday.

Cisco has spent a number of years restructuring its businesses in order to stay relevant in a world that’s rapidly adopting new cloud and software-defined technologies. A big part of this restructuring involves cutting staff who are deemed to have the wrong skills to take the company forward in this new direction.

In May, Cisco said it would cut 1,100 jobs worldwide, with 250 of those redundancies hitting staff at its main San Jose base. Those cuts came after the company laid off some 5,500 employees in August 2016.

The latest layoffs are detailed in documents sent to WARN, which is a service through which companies provide details of planned redundancies under U.S. labor law. “We regret to inform you that Cisco Systems will lay off certain employees at its San Jose facility,” wrote Saidah Grayson Dill, director of legal services at Cisco. “The action is expected to be permanent in nature.”

The documents reveal that Cisco will wave goodbye to the staff between Oct. 10 and 23. Most of the affected roles relate to engineering, software and technical positions, though a handful of administration, management and support staff will also lose their jobs.

“Cisco regularly evaluates its business and will always make the changes necessary to effectively manage our portfolio and drive the most value for our customers and shareholders,” the company said in a statement to the press. “As a result, this can mean realigning some areas so that we can invest in others such as security, data center/cloud and networking.”

Cisco’s most recent financial results do suggest that some kind of reorganization is still necessary to help the company grow. The company’s annual  revenue for its most recent fiscal year ending in July 2017 was $48 billion, down from $49.2 billion the year before. Meanwhile, its operating profit for the year fell by 5.6 percent, to $11.97 billion.

Cisco currently employs about 73,000 staff globally.

Image: Markusspiske/Pixabay

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